SA(SH:601021) Xin Lang Cai Jing·2025-05-08 12:29Core Viewpoint - Spring Airlines reported its 2024 annual report and 2025 Q1 report, showing a steady growth in revenue but a decline in net profit for Q1 2025 [1][3]. Group 1: Financial Performance - In 2024, the company's operating revenue reached 20 billion yuan, a year-on-year increase of 11.5%, with a net profit of 2.27 billion yuan, up 0.7% [1]. - The fourth quarter of 2024 saw operating revenue of 4.02 billion yuan, a 4.9% increase, but a net loss of 330 million yuan [1]. - For Q1 2025, the company reported operating revenue of 5.32 billion yuan, a 2.9% increase, but a net profit decline of 16.4% to 680 million yuan [1]. Group 2: Market and Operational Insights - The civil aviation market experienced steady growth in passenger volume, with a 16.1% increase in capacity and an 18.8% rise in passenger turnover for 2024 [2]. - The passenger load factor reached 91.49%, up 2.1 percentage points year-on-year, although the international market grew faster than regional markets [2]. - Due to market competition and pricing pressures, the average passenger kilometer revenue decreased by 6.5% to 0.385 yuan [2]. Group 3: Cost Management and Future Outlook - The company's cost and expense performance remained stable in 2024, with oil costs rising due to increased consumption despite lower oil prices [3]. - Non-oil costs were well-controlled, with a slight decrease in unit non-oil costs year-on-year [3]. - The company plans to focus more on expanding international routes in 2025, with a tax shield effect contributing to the Q1 profit decline, while pre-tax profit increased by 0.5% year-on-year [3]. Group 4: Investment Recommendations - The civil aviation market in China has significant growth potential, and low-cost airlines continue to show operational resilience [4]. - The current decline in oil prices is expected to benefit airline cost reductions significantly [4]. - Projected net profits for the company are 2.71 billion yuan, 3.25 billion yuan, and 3.74 billion yuan for 2025, 2026, and 2027 respectively, maintaining a "buy" rating [4].